This following example shows you how to set up a supplemental life insurance plan that will calculate each employees taxable wages for excess life, that is, coverage exceeding $50,000.
The plan in this example is established for employees on a monthly payroll frequency in which the coverage amount is not based on a specific calculation but can be arbitrarily selected by the employee. The premium charged to the employer is .04 per 1,000 units of coverage. There is no dependent premium and the employee does not have to make any contributions. There are also no eligibility requirements to participate in the plan.
You must first set up the plans rate table so you can reference it when you set up the plan.